Samsung Electronics and IBM Announce Patent Cross-License Agreement

IBM

SEOUL, South Korea and ARMONK, N.Y., - 08 Feb
2011: Samsung Electronics Co., Ltd. and IBM (NYSE: IBM[1]) today announced a
patent cross-license agreement, under which the companies will
license their respective patent portfolios to each other.

Specific terms and conditions of the agreement were not
disclosed.

Over the past several decades, IBM and Samsung have built strong
patent portfolios covering a wide range of technologies including
semiconductors, telecommunications, visual and mobile
communications, software and technology-based services. This
cross-licensing agreement enables the two companies to innovate and
operate freely while using each other's patented inventions to help
keep pace with sophisticated technology and business demands.

The companies said the cooperation fostered by cross-licensing
reinforces their ability to provide better products and services,
while maintaining their competitiveness.

"This licensing agreement will help both companies expedite
innovation and achieve business growth by providing each company
access to the other's patents for basic technologies," said Dr.
Seungho Ahn, Executive Vice President and Head of the IP Center,
Samsung Electronics. "We also hope the agreement will open
new opportunities for wider collaboration between two of the
leading innovators in the technology industry."

"Patents and innovation are a critical component of IBM's
high-value business strategy," said Ken King, vice president,
Patents, Software & Services IP Licensing for IBM. "In addition
to protecting the huge investment we make in R&D, patents also
allow us establish cross-licenses, which provide IBM and partners
like Samsung with significant freedom of action, which is essential
in the competitive global business environment."

IBM and Samsung topped the list of the world's most inventive
companies in 2010 as the first and second recipients of U.S.
patents, respectively. IBM has been the leading
recipient of U.S. patents[2] for 18 consecutive years.